Thread by @yb_effect

A single Twitter thread by @punk4156 in June led to a project now worth $34 million.

@nounsdao will take the concept of meta DAOs mainstream.

Let me explain why this is a must know project.

Thread Below👇

1/ John Watkinson and Matt Hall (co-founders of Larva Labs) released the Cryptopunks in 2017.

The Cryptopunks are 24x24 pixel images of 10,000 unique characters.

Cryptopunks became the model for NFT PFPs (profile pictures).

2/ These days on Crypto Twitter, it's pretty rare to see anyone with a propic of themselves.

The punks helped people understand the utility of NFTs.

But what's next for the NFT world?

3/ Punk 4156 described the Cryptopunks as the Citizen Kane of the NFT world.

With that analogy, I believe The Nouns project is "The Godfather".

https://twitter.com/WillPapper/status/1446627470287855618

4/ What is the Nouns project?

An Ethereum based NFT project.

On the website: "Nouns are 32x32 pixel characters based on people, places, and things".

5/ But there are a couple of themes that set the Nouns project apart and make it so unique.

The first theme is the idea of fair distribution.

6/ Normally, projects are minted in a couple of minutes after launch.

These NFTs end up going to people who happened to be online at the right time and place.

Sometimes people will mint 100s of NFTs from a single project.

7/ The Nouns are released differently.

Everyday, a single noun is auctioned off to the highest bidder.

Each time a noun auction is settled, the next one is automatically minted and the 24 hour auction starts again.

https://twitter.com/lastpunk9999/status/1428106402892034048

8/ As of this post, the Nouns project is on Auction #72.

9/ This inflationary model of releasing Nouns over time allows for a fair release.

As long as you have sufficient funds, you can buy a Noun. No need to worry about being late.

10/ The second theme that Nouns focuses on is the idea of bootstrapping treasury and governance.

NFT pfps bootstrapped identity (i.e. Punk 4156) and community (i.e. Cryptopunks), but the Nouns project takes it further.

11/ Each Noun owner is added to the NounsDAO.

One Noun (NFT) = One vote in the DAO

The NounsDAO is responsible for handing the Nouns treasury.

How does the treasury get money?

100% of the funds from each purchase of a Noun goes straight to the treasury.

12/ In regular NFT pfp drops, the founders typically layout a roadmap and work in a silo.

With Nouns, all the value and money comes from the community - no need to have trust in project founders.

Identity + Community + Treasury + Governance

https://twitter.com/punk4156/status/1400154938186031104

13/ The third theme that the Nouns project hits is the idea of time as rarity.

Most NFT pfp drops have different levels of rarities based on traits (i.e. alien versions were scarce and therefore rare).

However, all Nouns minted are equal.

14/ You're either a Noun or you're not a noun.

Meaning Nouns #1, #135, and #4398 are all only going to ever have 1 vote in NounsDAO.

The only differentiating factor is the timestamp/order number.

15/ Rarity is how early you bought it. Meaning you saw value the earliest and joined before Nouns went mainstream.

The Nounders call it "An Infinite Work of Art".

16/ The fourth theme of Nouns project is that its building blocks are completely free and open to use.

Nouns artwork was released under the public domain meaning that anyone can use Nouns to build other things without copyright worries.

https://twitter.com/punk4156/status/1444274080451080200

17/ The fifth and last theme is the idea of NounsDAO as a meta-DAO.

The price of each noun is already unrealistic for most individuals to buy.

Nouns #69 went for around 313.69 eth.

https://twitter.com/songadaymann/status/1447240897813483522

18/ So lots of people are joining DAOs and pooling capital to bid for a Noun.

For example, PartyDAO tries to buy Nouns and fractionalize ownership throughout the DAO.

https://twitter.com/jbrukh/status/1428886165336297473

19/ Members of sub-DAOs can pitch a proposal to their DAO which in turn passes it to the NounsDAO for funding (Top-down value).

And then NounsDAO receives tokens and profits from the projects built by members of sub-DAOs (Bottom-up value).

20/ All the Nouns win by helping each other and working for the Nouns universe.

It's a positive feedback loop.

https://twitter.com/jackbutcher/status/1447582715214123012

21/ In fact, the real value of Nouns in 1, 5, and 10 years will be determined by what projects NounsDAO ends up funding with their treasury.

I think of NounsDAO as a VC firm building out the Nounverse (Noun Universe).

Each day a new partner is added to the firm.

22/ Another cool point to highlight is how the Nounders (Noun Founders) automatically dilute their control over time.

Nounders are rewarded every 10th Noun for the first 5 years.

They own 10% of the voting rights for the first 5 years after which their overall stake decreases.

23/ The brilliance of the Nouns project comes from what I like to think of as the "NFT Paypal Mafia".

@punk4156 posted a Twitter thread back in June and very quickly started working with incredible NFT developers such as @supergremplin, @dhof, etc.

https://twitter.com/nounsdao/status/1424426919806767107

24/ Overall, I'm excited about this project and am excited to see what kinds of projects NounsDAO ends up funding and how the universe grows.

Check out this podcast with Punk #4156.

anchor.fm/digitallyrare/…

25/ Summary of what was covered about @nounsdao:

1. Model for meta DAO
2. Nouns are equal, time is a rarity
3. Public domain = Noun builders
4. Treasury & Governance is bootstrapped